Funny Comment

I had a very funny comment left with a serious question after it.

The reader noted that he commented once before and that I "chided me (rightly so it seems) for cashing out because I thought the market would crash :-)"

The reader also asked why I was bearish on Japan. He has done some research on the Japan Smaller Company CEF (JOF) and seems favorably disposed toward the fund.

I'm not sure bearish is the description but I am a disbeliever. The biggest problem I have is that I have trouble seeing the bullish case. Japan has had other massive rallies since the peak in 1989. During all those runs, bullish sentiment was way up. Maybe this time is it and maybe it isn't, I don't know.

I have been saying the same thing about Japan since the start of the rally and have been wrong the whole time. I write about all sorts of themes on this site and they all are easy for me to grab onto, implement in the portfolio and explain to clients.

I would rather continue to be wrong than buy into a theme I don't fully understand or believe in.

One last point about this is that Japan is probably one of my blindspots, homebuilders would be another. All investors have blindspots this is normal but it is useful to try to get in touch with your blindspots if you aren't already.